The world's second richest man, Warren Buffett, talks about overpaid CEO's
My thinking on overpaid CEO's has been profoundly influenced by a business man of integrity: Warren Buffett- the second richest man in the world according to Forbes magazine. Unlike many modern CEO's, Mr. Buffett made his money the old fashioned way: he earned it. Mr. Buffett's company Berkshire Hathaway pays him $100,000 per year. That is not enough to amass a fortune of $46 billion dollars - most of which he is giving to charity. He made his money by increasing the share value of his stock in Berkshire. Unlike many modern CEO's that take their money without regard to the fate of the stockholders, Mr. Buffett's wealth is directly linked to the share price of his stock. Here is what Mr. Buffett has to say about CEO pay starting on page 16 of his 2005 letter to shareholders: http://www.berkshirehathaway.com/letters/2005.html
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